The Supreme Court Rules on Obamacare

In a 5-4 decision, the U.S. Supreme Court upheld the constitutionality of Obamacare (the Patient Protection and Affordable Care Act). Lawyers, politicians, journalists and citizens are scouring the judicial rulings to understand its implications. The law is exceptionally complex, so it will take time fully comprehend the ramifications of the ruling.

Here are a couple of the most significant elements of the Court’s ruling.

The penalty for failing to purchase health insurance is equivalent to a tax, which Congress has the authority to assess. Thus, the individual mandate is Constitutional.

Congress does not have the power under the Commerce Clause to force you to purchase insurance.

Congress can require states to increase their Medicaid roles and provide financial incentives to do so, but it can’t withhold all Medicaid funding if it doesn’t. It seems confusing and contradictory and will likely lead to further litigation.

Here are a couple of quick thoughts and observations.

The logic of the Court regarding the individual mandate was interesting. Apparently, Congress can’t force you to purchase something, but they can tax or penalize you if you don’t.

The Medicaid issue is one of the most unclear parts of the ruling. Unlike the individual mandate, it seems Congress can require the states to increase their Medicaid roles, but can’t penalize them if they don’t. The issue hinges on state sovereignty, and it will be interesting to see how this plays out, especially since several states have already passed legislation opting out of Obamacare or the individual mandate.

The split ruling was no surprise, but it was a shock that Chief Justice John Roberts upheld the constitutionality and Justice Anthony Kennedy did not. The unpredictability of judges and juries is what’s often referred to as the hazards of litigation. No matter how strong you think your case is, a judge or jury may see it differently.

Today’s ruling by the Supreme Court isn’t going to end the discussions or fights over Obamacare. There is still a lot more to come.

I welcome your comments and thoughts regarding the Supreme Court decision. Click here if you would like to take a quick poll on whether you agree or disagree.